Eaton Corp PLC

ETN: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$224.00	Mkttc	Zvxghhhv

Eaton Earnings: Strength in Electric Americas From Investment Spending Propels Higher Valuation

Joshua Aguilar

Aug 2, 2023

Narrow-moat-rated Eaton once again had a great quarter. We lift our fair value estimate to $195 from $176. Most of the increase is due to management’s revised 2023 earnings outlook (which we mostly agree with), with the incremental benefits coming nearly evenly from both our updated long-term targets and time value of money. Consolidated revenue rose to $5.87 billion, or 13% organically, while segment operating margins increased 150 basis points to 21.5%, during the quarter.

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